New Milford firm to get tax break

Last week the Town Council voted to provide the economic incentive to the company that plans to buy the former Nestl� and Givaudan property on Housatonic Avenue.

Mayor Pat Murphy said any future tax break would depend upon the number of people employed by the company after five years.

At the current property value and mill rate, the abatement will cost the town $217,436 a year in lost tax revenue, according to Ron Parks, tax assessor.

Councilman John Lillis opposed the tax break He said the town has already made a "substantial investment," spending $2 million to extend sewer and water along Housatonic Avenue to the property.

He argued that a tax break should be tied to yearly employment steps and a requirement that residents be given priority in hiring. Town Attorney Randy DiBella said the council can agree to fix an assessment, but if it's tied to jobs he doubts it could be defended.

Lillis said the town is getting nothing "other than a hope and a wish that they (MedInstill) do well."

But others disagreed.

Councilman Ray O'Brien said 100 employees would mean a payroll "north of $3 million" and 500 employees would have a payroll "north of $20 million."

"It will have a substantial benefit to New Milford," he said, because employees will be shopping and eating in town even if they don't live here. "I hope it becomes a paradigm to work with other businesses coming to New Milford."

"A company like this leads to other corporations," said Councilman Roger Szendy. "I think it's going to have a snowball effect. We have to entice these companies to come. I think this is a good move for the town."

Szendy said it is unfair to attribute the full cost of the sewer and water upgrades along Housatonic Avenue to MedInstill. He said that area is the town's industrial zone and the infrastructure improvements were necessary.

Council member Pat Sherry said other states are more business-friendly.

"We are lucky that they are here," she said, because the company will create jobs that will allow residents' children to come back after getting a college degree and find work. "This is our future. It's not easy giving up tax dollars. You have to look sometimes beyond today and tomorrow into the future."

Councilman Peter Mullen said there were some obvious positives, but he's concerned the tax break could impact the budget and weaken the town's position in dealing with existing companies that might want similar incentives. And this abatement might not be MedInstill's last.

In a January letter to the company's chief executive officer, Dr. Daniel Py, the mayor said if 500 people are employed in five years she will ask the council for a 50-percent tax abatement, with an additional 10-percent reduction for each additional 100 employees.

"We have high expectations," Murphy said Tuesday. "I want to see jobs."